Lee noted that the financials were having a tough time, with the Select Sector SPDR Fund ( XLF) down 5% on contagion fears.

Fred Cannon, of Keefe, Bruyette & Woods, said the U.S. financials are tied to the hip to the European financials, adding the MF Global situation only made the situation worse.

Cannon said the situation will provide ammunition for the enforcement of the Volcker Rule. He said MF Global was in a regulatory blind spot in terms of its size and broker status. He said the eurozone debt crisis will only change when banks in Europe actually raise capital.

Turning to the markets, Jim Bianco, of Biano Research, noted the high correlation between the S&P index and S&P stocks. He said the average S&P stock is 85% correlated to the index, a 80-year high.

He said it's very difficult to be a stock picker when government intervention overwhelms the markets. He agreed with Adami that there are exceptions to this rule such as McDonald's ( MCD) which continues to trade well after hitting a 52-week high in a down tape.